Enterprise Risk Management Technology Guide 2023

Milliman: Solutions for emerging risks

How do you expect insurance risk and capital management to change over the next five years and how will technology support this?

I am unsure if regulatory capital requirements in the US are going to shift, but insurers’ internal approaches to economic capital and understanding their risks, such as climate change, cyber risk and environmental, social and governance (ESG) factors are definitely evolving. 

Most insurers in the US are very comfortable with financial risk, but there are new risks to contend with and significant energy will be dedicated to really trying to understand, measure and monitor these risks. Cyber and climate risks are at the top of that list.

From what I see in the UK and Europe, the regulators are pushing companies to look hard at cyber and climate risk. In the US, the regulators are not necessarily pushing it, but companies are taking the initiative to define their own methodologies.

What software updates does Milliman plan over the next year?

Patricia RenziFor the existing products we have, staying current with trends and regulation is paramount.

We also have some new products that are just getting out into the market around cyber, climate and operational risk. As mentioned, we are seeing a growing acknowledgement that being able to measure those risks in a broad and comprehensive way is necessary and lacking right now. 

If we look at operational risk, people have been measuring operational risk, but it has been very basic. So, it is crucial for insurers to really understand where all their operational risks are. You will see some nice inventions from us in this area. 

Our cyber risk product is now available. These are all built on Milliman’s CRisALIS risk management platform. We are also looking to leverage the CRisALIS platform for a climate risk product. 

We are also building in parameters to our CHESS product, which is an economic scenario generator, to monitor risks associated with portfolios from the perspectives of ESG. 

Here are a few key points of difference about Milliman’s CRisALIS platform: 

  • It is forward-looking, and not tied to being calibrated on past data. For evolving or adversarial risks like climate and cyber, this is important; 
  • CRisALIS is explanatory – frequency-severity modelling cannot tell you why the outcome is what it is, but CRisALIS can;
  • In addition, CRisALIS incorporates data and expert knowledge transparently. CRisALIS is clear about which assumptions are certain and the consequences of them being less certain.

What insurance technology trends do you expect in the future?

Broadly speaking, the insurance industry has been slow in adopting a digital strategy. I believe there is a huge opportunity now and the industry is ripe for that. The pandemic has also highlighted the need for a digital strategy, and my expectation is there will be a big investment from insurers in digitalisation. 

I expect most of this digital investment will be on the customer-facing side of insurance first, but I’m also seeing companies recognise that with increased regulations and emerging risks, being efficient and effective in internal operations is critical. 

Insurers that have invested in optimising those functions are in a much better place than their peers. 

Royal London, for example, has made a big investment in transforming its actuarial and risk functions, leveraging our technology. 

When the pandemic created a huge market event, Royal London was able to monitor the impact on capital due to the market volatility in close to real-time due to the automation. 

How does Milliman stand out from its competitors?

Our real value proposition is we have deep subject matter expertise within Milliman. We also have an incredible technology team. For example, we were using cloud technology in 2010. We are on the edge of emerging technologies, and also have people who are right on the edge of emerging risks and actuarial thought leadership. 

Where we really shine is looking at what’s out there, what is new, and what are people not really thinking about.

Guide entries by Milliman

FactSet Data & Analytics Solutions

Touchstone

Pricing - Tyche Pricing System & Aon Pricing Platform

Reserving - Tyche Reserving System

Aptitude IFRS 17 Solution

Aquantec Ocean

Atidot AI & Analytics Platform - Atidot OPTIMAL

ANNalytica

BW KIDS 4 PRIIPS Tool

SIImplify

With Profits Payout Monitoring Dashboard

Demographic Experience Monitoring Tool

ATOME: Particles

ATOME: Matter

ADVISE® Enterprise Risk Modeler

Conning Allocation Optimizer™

Conning Climate Risk Analyzer™

FIRM® Portfolio Analyzer

GEMS® Economic Scenario Generator

XSG

Detech Optimizer

DEvent

Dynamo Analytics - Psicle

Incisive Essentials - Xcellerator

Integrate

Milliman Mind

ModelSign

Solvency II Compliance Assessment Tool

STAR Solutions NAVI

STAR Solutions VEGA

Milliman Mind–IFRS 17

Arius

Datalytics-Defense

Nodal Claims Triage

Milliman Economic Scenario Generator

Milliman AccuRate Fleet

Milliman Bungalow

Milliman PinPoint

Curv

Milliman Long–term care Advanced Risk Analytics™ (Milliman LARA™)

Milliman M-PIRe Valuation & Securitization Software

AXIS™ Actuarial System

Scenario Generation Solutions

Climate Pathways

RiskIntegrity™ Suite

Oasis Loss Modelling Framework

GLASS

Economic Scenario Generator

Phinsys Insurance Suite

CoMeta

ChemMeta

Matching Adjustment Analytics Tool

R³S Software Suite

Mo.net Model Development Studio

Mo.net Operational Modelling Centre

Mo.net Quotations Service

Mo.net Cloud Modelling Service

Mo.net Mobile Modeller

IFRS Assess Enterprise

SolvencyTool

SolveXia

Governance, Risk & Compliance System

DataValidator

ResQ Financial Reporter

Unify

Igloo

Radar

ResQ

zeb.control

evo-insight - New Actuarial Modelling and Analytical Platform from Zenith

Asseco IFRS 17 Engine

Actuo SII Engine

IFRS17 Solution

Reserving solution

Solvency II solution

Pricing solution

CLARA Casualty Claim Platform (CLARA Triage, CLARA Treatment, CLARA Litigation, CLARA MSP Compliance, CLARA Optics)

Portfolio Manager

JBA Flood Modelling Technology

IFRS Assess and Risk Analyser

Numerix Insurance Suite

PATOne EDM

Quantee Platform

On-Demand CAT Modelling Services on the Oasis Platform

Graci

Riskonnect

FE Solvency II

Grace Connect GRC Suite

Monitaur

DeepCyc

ForeCyc

Metryc

Escali Financials and Escali Supervision

CALFITEC

Quotech Underwriters Workbench

FIS Insurance Risk Suite (formerly known as Prophet)

LCP InsurSight

SS&C Algorithmics for Insurance

True North Data Platform

Balance Sheet Management (BSM)

Economic Scenario Generation (ESG)

MavenBlue Enterprise Pricing Management (EPM)

Optalitix Models and Optalitix Quote

Montoux Actuarial Automation Platform

Iris Actuarial Platform

CyberCube Analytics - Portfolio Manager

R³S Model Packages

R³S Modeler

R³S Process Manager

R³S Development Manager

Decision Focus

Fathom's Product Stack

Capital - Tyche Capital Model & ReMetrica

Incisive Essentials - Concourse

VIPR INTARGA

VIPR Insights - Data Analytics

Zupervise

Protecht ERM

Slope Software

Camms GRC Software

Quantee next-generation insurance pricing platform powered by AI

Oversight360, a Sicsic Solution

RISKflo

End User Computing (EUC) and Model Risk Management Software with Inventory, Discovery and Monitoring Modules

XLAudit Spreadsheet Error Analysis and Data Integrity Software

ClimateMAPS

Financial Results Analyzer

Risk Explorer™

RiskAgility FM IFRS 17 Calculation Engine

Predictable Dynamics

Res-Solver™

RiskAgility Financial Modeller